20000321

STOCKS

RECORDER REPORT

KARACHI: The arrival of US President Bill Clinton in South Asia and expected increase in polyester fiber prices helped the bulls to take control of the proceedings and the index at the Karcahi Stock Exchange on Monday soared to over two and half year high of 2033.

The post-Eid session recorded a strong rally, which boosted the prices of most of the blue chips items especially the synthetic companies. The rise in petroleum prices is likely to force the local producers to increase the prices of their end products. The price of raw material used in making polyester staple fiber has already gone up sharply owing to oil hike.

An analyst from Westminster and Eastern Financial Services Ltd., said that the bulls had continued roaring in the market as it opened after three-day Eid holidays. The KSE index struck a positive note due to the arrival of President Clinton in Delhi on way to Dhaka.

He said that the market witnessed immense activity in synthetic sector on the indication given by PSF manufacturers of possible upward revision of the fiber prices by Rs 3-4 per kg and on a rumour about imposition of duty on imported fiber.

The KSE index was moving along with bullish sentiment but investors were cautious in picking scrips on prevailing rates as KSE index was missing genuine investments in order to sustain the present levels.

Salman Ahmad of Finex Securities said that the programme of President Clinton, to visit Pakistan on March 25 allowed the bulls to strike back. The index and prices of several scrips touched new heights. It was mainly hectic activity in the synthetic fiber sector which helped the market to record a hefty rise of 31 points.

Following the visit of President Clinton, he added, the government might give some assurance about signing of CTBT. If that was done the government would get some fresh funding from donor agencies, especially from Japan.

The KSE-100 index rose by 31.71 points or 1.58 percent to 2033.68 from 2001.97 of Thursday. The volume amounted to 364.653 million shares as against 207.318 million shares of Thursday. The market capitalisation moved up to Rs 513.999 billion from Rs 507.132 billion.

Mohammad Zubair Ellahi said that the across the board highs in fiber stocks had pushed the index to new highs in recent past. The strong positive tempo with approaching favourable events in a liquid market suggested further rallies ahead. The broader term outlook positive.

Faisal Abbas of AHR Securities said that buying spree in the synthetic and rayon sector paved the way for across the board bullish momentum throughout the session as market players established new positions. In addition, institutional support by way of fresh buying also boosted the market.

Dhan Fiber on a volume of 94.608 million shares recorded a rise of Rs 4.25 to Rs 14.35, ICI on a trading of 68.478 million shares closed at Rs 19.50, i.e. higher by 40 paisa, PTCL on a trading of 61.576 million shares showed a rise of 40 paisa to Rs 34.05, Hub Power moved up to Rs 28.45 from Rs 28.40 as nearly 23.975 million shares changed hands and FFC Jordan on a turnover of 20 million shares moved up by 30 paisa to Rs 16.00.